EQT's Tender Offer for Douzone Bizon Progresses Smoothly

Global private equity firm EQT Partners' tender offer for Douzone Bizon is proceeding smoothly, the company said.

EQT disclosed on the 13th that trading volume for 12.25 million Douzone Bizon shares had been recorded as of the 12th, representing approximately 67% of shares subject to the tender offer.

Investment banking industry observers consider a tender offer successful when large trading volumes occur early in the process, the stock price remains slightly below the tender offer price, and institutional and foreign investors participate in buying. Douzone Bizon shares were trading at 119,000 won as of 11:10 a.m. on the 13th, slightly below the tender offer price.

EQT is conducting the tender offer through special purpose company Doronicum from December 23 to January 24, targeting 18,158,974 shares (57.7% stake) of Douzone Bizon. The tender offer price is 120,000 won per share, identical to the price agreed upon in the share purchase agreement (SPA) signed with former controlling shareholder Chairman Kim Yong-woo and others in November last year. This represents a 25.0% premium over the closing price of 96,000 won immediately before the tender offer commenced. A total of 2.179 trillion won will be invested in the tender offer.

In November last year, EQT signed an SPA to acquire 10,964,909 Douzone Bizon shares (34.8%) for 1.3158 trillion won, purchasing Chairman Kim's 23.2% stake and Shinhan Financial Group affiliates' 14.4% stake required for management control. Douzone Bizon holds 2,354,110 treasury shares, and if the tender offer succeeds, EQT will secure 100% of non-treasury shares (92.5% of issued shares). The minimum stake required for voluntary delisting is 95%.

With the acquisition of all remaining shares, EQT's total investment in Douzone Bizon will reach 3.5 trillion won. EQT stated, "Our objective is to make the company a wholly-owned subsidiary through voluntary delisting. We will focus on long-term growth strategy by securing flexibility in management activities and speed in decision-making."